Matrix Service Company · NASDAQ:MTRX
Matrix Service — Q2 2024 Earnings Presentation
21 slides from Matrix Service's earnings presentation, Feb 8, 2024
Slide 1: FY24 Q2 Earnings Call
FY24 Q2 EARNINGS CALL 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains certain forward-looking statements concerning Matrix Service Company’s operations, economic performance and management’s best judgment as to what may occur in the future. The actual results for the current and future periods and other corporate developments wil
Slide 3: Safety Moment
SAFETY MOMENT . Resources e e yn a (0) H é o j o 0 ? © ENDINGTHESTIGMA OF MENTAL HEALTH
Slide 4: Historic Backlog
HISTORIC BACKLOG $1.45B $1.39B In FY 2024, Q2, we generated $231 million in awards $1.09B $595M $658M the 10th consecutive quarter with a $271M book-to-bill ratio at or above 1.0. $460M $450M Backlog of $1.45 billion, $451M the highest backlog in company’s 40-year history. $360M $344M $337M FY 2023,
Slide 5: Our Progress to Profitability
OUR PROGRESS TO PROFITABILITY • Completed projects bid in a highly • Rebuilt backlog to historic levels to competitive environment which resulted support higher revenue volumes in limited margin opportunity • Improved liquidity and reduced our • Streamlined and focused the company debt to zero • Res
Slide 6: The Energy Industry
THE ENERGY INDUSTRY U.S. LEADING ENERGY MARKETS PROVIDE LONG-TERM OPPORTUNITIES TRADITIONAL ENERGY TRANSITIONAL AND EMERGING ENERGY (LOW CARBON) CRUDE OIL | NGLS LNG | HYDROGEN | AMMONIA The world is still heavily dependent on fossil fuel Energy companies are developing longer-term, and will be for
Slide 7: Opportunity Pipeline $5.0B
Low Carbon Energy Mix OPPORTUNITY PIPELINE 71% Traditional Energy and Traditional Chemicals 29% Supports traditional and lower carbon energy mix. NATURAL GAS 14.5% LNG All three operating segments 14.7% contain individual projects of $75 million or greater. $5.0B HYDROGEN & OTHER RENEWABLES 25.1% Th
Slide 8: Laying a Strong Foundation | Hydrogen
LAYING A STRONG FOUNDATION | HYDROGEN • Completed a 5-million gallon hydrogen • Performing a feasibility study for a sphere providing transportation fuel to global energy company to develop the west coast large-scale liquid hydrogen storage solutions for domestic and international • Performing a FEE
Slide 9: Hydrogen Hubs
HYDROGEN HUBS In October 2023, the DOE announced $7 billion in funding to launch seven Regional Clean Hydrogen Hubs (H2Hubs) to accelerate the commercial-scale deployment of low-cost, clean hydrogen: PACIFIC NW HUB MIDWEST HUB • PNWH2 • Midwest Alliance for Clean Hydrogen • Eastern WA, OR, MT (MACHH
Slide 10: Summary
SUMMARY 10
Slide 11: December 31, 2023 Backlog | $1.45B, a Company Record
DECEMBER 31, 2023 BACKLOG | $1.45B, A COMPANY RECORD +95% +33% $1.45B $1.09B Number of construction projects, including two large ethane tank $658M projects and the recent addition of an LNG liquefaction and storage $271M terminal. $740M Includes recent award of an LNG peak shaver that will begin la
Slide 12: Quarterly Trend | Consolidated
QUARTERLY TREND | CONSOLIDATED (In millions except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 Revenue $ 208,431 $ 193,840 $ 186,895 $ 205,854 $ 197,659 $ 175,042 Gross Profit (Loss) 13,008 (1,302) 4,419 14,695 11,859 10,589 Gross Margin 6.2% (0.7%) 2.4% 7.1% 6.0% 6.0% SG&A
Slide 13: Quarterly Trend | Storage & Terminal Solutions
QUARTERLY TREND | STORAGE & TERMINAL SOLUTIONS (In millions except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 Revenue $ 76,933 $ 62,516 $ 52,165 $ 64,079 $ 90,144 $ 62,360 Gross Profit (Loss) 7,564 1,648 (810) 2,067 4,953 1,838 Gross Margin 9.8% 2.6% (1.6%) 3.2% 5.5% 2.9% S
Slide 14: Quarterly Trend | Utility & Power Infrastructure
QUARTERLY TREND | UTILITY & POWER INFRASTRUCTURE (In millions except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 Revenue $ 44,870 $ 50,535 $ 35,024 $ 39,075 $ 32,395 $ 40,144 Gross Profit (Loss) 1,714 2,426 2,790 3,770 3,697 1,415 Gross Margin 3.8% 4.8% 8.0% 9.6% 11.4% 3.5%
Slide 15: Quarterly Trend | Process & Industrial Facilities
QUARTERLY TREND | PROCESS & INDUSTRIAL FACILITIES (In millions except %) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY 2023, Q4 FY 2024, Q1 FY 2024, Q2 Revenue $ 86,628 $ 80,789 $ 99,706 $ 102,700 $ 75,120 $ 71,305 Gross Profit (Loss) 4,330 (5,131) 3,160 8,397 5,078 6,671 Gross Margin 5.0% (6.4%) 3.2% 8.2% 6.
Slide 16: Fiscal Year 2024, Q2
FISCAL YEAR 2024, Q2 ($ in millions) • As expected, cash increased in FY 2024, Q1 due to net cash flows from operations. $10 million of those proceeds were utilized to repay all outstanding borrowings under the credit facility. • Liquidity increased $26 million in the quarter from the positive cash
Slide 17: Closing Remarks
CLOSING REMARKS • With record-high backlog we expect to see a marked improvement KEY LONG-TERM in revenue volumes in the near term, providing for better FINANCIAL TARGETS* construction overhead absorption, leverage of SG&A, and improved bottom line performance. < 6% < 6.5% Net Working SG&A target Ca
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
APPENDIX 19
Slide 20: Adjusted Net Loss
ADJUSTED NET LOSS (In thousands except per share amounts) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) Restructuring costs 1,287 1,278 316 261 _ _ Goodwill impairment _ 12,316 _ _ _ _ Gain
Slide 21: Adjusted EBITDA
ADJUSTED EBITDA (In thousands) FY2023, Q1 FY2023, Q2 FY2023, Q3 FY2023, Q4 FY2024, Q1 FY2024, Q2 Net Income (Loss), as reported $ (6,512) $ (32,827) $ (12,686) $ (336) $ (3,167) $ (2,851) Restructuring costs 1,287 1,278 316 261 _ _ Goodwill impairment _ 12,316 _ _ _ _ Gain on sale of assets _ _ _ (2
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